You have more than 1 core in the system and the application has multi-core support - top shows each core as 100%.
Example;
You have 8 cores and your application has proper parallel support - it has 4 threads that are using maximum available calculation power, thus your application shows up as using 400% of CPU (out of 800% available)
Here’s an example of lbzip2 compressing a file with 4 threads in use (-n 4) on an 8-core system: http://i.imgur.com/cjSmdkl.png